Crypto Market Rebounds 1.1% Amid Easing Tensions, Liquidations Drop 3.6%

The crypto market has shown signs of recovery after a tumultuous start to the week, marked by significant liquidations. The rebound is attributed to favorable macroeconomic developments that have eased some of the market's previous concerns.

Over the past day, liquidations amounted to $384.4 million, a notable decrease from earlier days. Concurrently, the global market capitalization increased by 1.1% over the same period. This shift comes after a period of steep declines driven by fears of a global recession, trade wars, and broader macroeconomic uncertainties. Bitcoin (BTC) and Ethereum (ETH) had plummeted to monthly and yearly lows, respectively, leading to widespread liquidations.

According to data, $384.4 million was liquidated in the past 24 hours, with $138.2 million from long positions and $246.2 million from short positions. Bitcoin accounted for $186.7 million in liquidations, with $146.0 million from short positions. Ethereum experienced $73.6 million in liquidations, with $40.3 million from long positions and $33.1 million from short positions.

Bitcoin has since regained ground, trading at $82,299, marking a 3.6% increase over the past day. This recovery can be partly attributed to recent diplomatic developments. Ukraine agreed to a temporary 30-day ceasefire in response to a proposal, reducing geopolitical tensions that had previously weighed on the market. Additionally, Ontario suspended 25% tariffs on electricity exports to neighboring regions, further easing trade tensions.

Political figures have also provided reassurances to the markets. House Speaker suggested that the economic policies, which initially contributed to market instability, would eventually stabilize the economy. White House Press Secretary noted that the market dip represented a temporary state rather than a definitive or permanent trend, emphasizing that market numbers reflect a specific point in time and can evolve.

These combined factors—political reassurances, easing trade tensions, and a reduction in geopolitical risks—have contributed to the crypto market’s recent recovery. The market’s resilience in the face of significant liquidations and macroeconomic uncertainties highlights its ability to adapt to changing conditions and find support in broader economic trends.